CHAPTER-1

1.1 INTRODUCTION TO INDUSTRY

Manufacturing refers to the process of converting raw materials into finished goods through the use of
machines, tools, human labor.

Manufacturing industry refers to where the goods are produced in large quantities after processing from raw
materials to more valuable products. It is the essence of secondary sector of the economy. The term may
refer to a range of human activity, from handicraft to high-tech, but it is most commonly applied to industrial
design, in which raw materials from the primary sector are transformed into finished goods on large scale
such goods may be sold to other manufacturers for the production of other more complex products such as
households appliances, aircraft, furniture, automobiles, sports equipment etc. distributed through the tertiary
industry to end users and consumers usually through wholesalers, who in turn sell to retailers, who then sell
them to individual customers.

A globally competitive manufacturing sector is India's greatest potential to drive economic growth and job
creation. Due to factors like power growth, long-term employment prospects, and skill routes for millions of
people, India has a significant potential to engage in international markets. Several factors contribute to their
potential. These value chains are well positioned to benefit from India's advantages in terms of raw
materials, industrial expertise, and entrepreneurship. And also, they can take advantage of four market
opportunities expanding exports, localizing imports, internal demand, and contract manufacturing.

Manufacturing sector in India is gradually shifting to a more automated and process driven manufacturing
which is expected to increase the efficiency and boost production of the manufacturing industry. India is
gradually progressing on the road to Industry 4.0 through the Government of India’s initiatives like the
National Manufacturing Policy which aims to increase the share of manufacturing in GDP to 2 .25 percent
by 2025 and the PLI scheme for manufacturing which was launched in 2022 to develop the core
manufacturing sector at par with global manufacturing standards.

Die casting is a pivotal manufacturing process widely adopted in the automobile industry to produce metal
parts with intricate shapes and high precision. This method involves forcing molten metal under high
pressure into mold cavities made from steel. The primary metals used include aluminum, zinc, magnesium,
lead, etc.

Injection molding and rubber molding play indispensable roles in the automotive industry. while injection
molding is predominant for plastic components, rubber molding is essential for producing parts with
damping, sealing and flexibility characteristics crucial for vehicle performance, comfort and safety.

1
1.2 Methodologies in Die Casting, injection molding and rubber molding

1. Hot-chamber die casting: This method is suitable for metals with low melting points and good
fluidity, such as zinc, magnesium, and some low melting point aluminum alloys. The process
involves a piston which forces molten metal from a connected furnace into the die.

2. Cold-chamber die casting: This method is used for metals with high melting points, such as
aluminum and copper alloys. The process requires molten metal to be ladled into the injection system
before being forced into the die. Although slower than hot-chamber casting, it’s necessary for
components requiring materials with higher strength and temperature resistance.

3. Material injection: Injection molding involves injecting molten material, typically plastic, into a
mold cavity at high pressure.

4. Mold design: The molds used are precision engineered and can produce complex shapes with tight
tolerances.

5. Material preparation: Rubber molding involves the shaping and curing of rubber materials in a
mold under heat and pressure.

6. Mold types: Common rubber molding methods include compression molding, transfer molding, and
injection molding.

1.3 Applications in the automobile industry

The application of die casting in the automobile industry spans a wide range of components, including
engine parts like blocks and pistons, transmission parts, structural elements of the vehicle, housings for
automotive electrons, and more. The continuous advancements in die casting and squeeze die casting, are
further enhancing the quality and capabilities of this manufacturing process, making it indispensable to the
future of automotive design and production. Die casting as a manufacturing process has been a cornerstone
in the evolution and production efficiency of the automobile industry. Its ability to produce durable, and
complex metal parts rapidly and cost effectively for high quality components.

Many engine components, such as air intake manifolds and certain housing components, are made using
injection molding. It is also used for producing functional parts like gears, clips, and connectors. Interior
components like dashboard components, door panels are commonly manufactured using injection molding
due to the process’s ability to produce aesthetically pleasing and functional parts.

Rubber molding is extensively used for producing seals and gaskets to ensure the integrity of various
automotive systems such as engines, transmissions. Rubber parts are crucial in the manufacturing of
suspension components to absorb shocks and vibrations. It is foundational for producing tires, an integral
component of any vehicle. Rubber parts are employed in anti-vibration to as smoother ride and reduced
noise levels.

2
 CHAPTER-2
ORGANISATIONAL PROFILE

2.1 BACKGROUND

Mr. Sidda Reddy, a visionary techno craft founded Lakshmi Machine Tools at Bommasandra, Bangalore in
1997 for producing Dies, Molds, machined components and related tooling’s, etc.

 UNIT-1 Bangalore, started in the year 1997

Main products: Pressure Die Casting Tools, Proto parts manufacturing, Fine blanking Tools, Press
Tools, Plastic Injection Molds, Rubber Injection Molds, Jigs and Fixtures, Component production

 UNIT-2 Bangalore, started in the year 2007

Main products: plastic injection parts to automobile industry

 UNIT-3 Malur, Karnataka started in the year of 2005 at Bommasandra later shifted to malur in 2015
Main products: Die Casting components and precision machined components.

LMT are one of the reliable ISO certified manufacturers and suppliers of aluminum pressure die casting
tools and components, fine blanking tools, plastic injection Molds and components, rubber injection Molds,
etc. They also offer Proto samples, CNC, VMC, Turning and EDM Wire cutting Job Works to our clients.
They also offer CMM Job work services for inspections, Reverse Engineering etc., their product and service
range is heavily demanded in numerous application areas such as aero-space, automobile, defence, medical
equipment and is widely appreciated for high performance, dimensional accuracy, high precision and
unmatched productivity.

3
 Details UNIT-1 All type UNIT-2 Plastic UNIT-3 Alu Die
tools, All type Proto molding casting
parts & production
Work force 50 15 85

Languages English English English

Current production 60% 50% 55%

capacity utilization

Land size(m^2) 900sq.m 300sq.m 61800sq.m

Building size(m^2) 800sq.m 260sq.m 2100sq.m

manufacturing size

Quality certification ISO To be done ISO upgrading for

IATF
Environmental Yes yes yes
clearances

ERP capacity Yes yes yes

4
2.2 NATURE OF BUSINESS

LMT manufacture and supply a wide variety of plastic injection molds and components and also offer
customized solution to their valuable customer at highly economic prices to meet their specific needs and
requirements. Plastic injection molds are designed and developed in-house under the supervision of
experienced professionals. Molding and manpower in house for complete injection molding and post
processing requirements.

They manufacture and supply a wide variety of rubber injection molds and offer customized solutions. From
the design till part approval team LMT will be behind all activities including tryouts at customer places and
support till part approval. Further during production run the tools are maintained by team LMT as per the
customer requirement.

LMT offer quality precision CNC machined products for electronic, automotive, aerospace and other
applications in various finest grade materials such as brass, aluminum, stainless steel and many others. They
undertake job works for CNC turning, CNC Vertical Machine Centre, CNC EDM wire cutting, spark
erosion, surface grinding, cylindrical grinding and inspection to their clients. They have deployed a team of
highly skilled programmers and operators to offer highly effective solution to their clients. CNC wire cut job
works of high precision tools and components are carried out.

They have developed a state-of-the-art manufacturing facility that is technologically upgraded and fully
installed machine shop. In addition, it is managed by a team of professionals who are experts in their
respective domains. The machine installed at their premises is tested for efficiency and performance. With
the use of latest machinery and technology, they are able maintain a rapid rate of production along with
flawless quality. They involve from product development till supply of finished product delivery and
continuation of mass production under one roof

Customer assistance: Ensuring all benefits of die casting processes are delivered by involving ourselves from
customer’s product design and manufacturing feasibility study phase

Knowledge and process integration: Integrate their knowledge in tool design and manufacturing, machining
and tailor our processes to suit the end product

Precise capability: Ability to cast, mold precise tolerances including critical side cores and lifters which
results in minimizing the need for secondary processes

Process capability: All major secondary processes are done in house by implementing processes automation
methodologies

Capable of migrating from “Build to print” to “Build to specifications”. Well-staffed design section
supported by latest software for design and manufacturing processes. Complete DFM (Design Feasibility for
Manufacturing) study is carried out for all new parts before commencing production.

SCOPE
5
Their scope of work:
 Design / Toolroom – Die casting tools, plastic injection Molds, rubber injection Molds, press tools,
machining fixtures.
 Die casting tools & components
 Fine blanking tools – manufactured as per customer design
 Plastic injection tools & components
 Rubber injection tools- manufactured as per customer design
 Press tools & components- manufactured as per customer design
 Machining fixtures
 Machined components
 Proto projects – casting, sheet metal, plastics, rubber & machined parts
 CMM inspection job works
 APQP & PPAP, estimation & costing projects of format documentation

2.3 VISION, MISSION AND QUALITY POLICY

VISION:

 To enhance customer satisfaction

 To be a contributor in every automotive part and every automotive industry that comes in their scope

MISSION:

“To deliver greater value to our customers by providing complete competitive solutions through
technological leadership and manufacturing excellence through continuous improvement.”

QUALITY POLICY:

LMT is committed to produce and deliver quality products to their customers on time.
 Efficient in every process
 Effective continual improvement of quality management
 provide appropriate training to employees and other relevant personnel
 proactively seek customer feedback and appropriately address them

CORE VALUES

 Outstanding
 Challenging
 Learning and sharing
 Team work
 Contribution to industry
6
2.4 WORK FLOW MODEL

7
 Raw
materials
from stores

Milling

Surface
Grinding

CNC

Sparking

Polishing

Inspection

Dispatch

Final
Inspection

8
 2.5 PRODUCT PROFILE

Aluminum die casting recently developed parts

Aluminum pressure die casting tools

9
 Rubber components

Injection molds components

10
2.6 OWNERSHIP PATTERN
The ownership pattern of Lakshmi Machine Tools is partnership firm. A partnership is a form of business
which enables two or more persons to co-own an organization, and they agree to share the profits and losses
of the company.
Following are the partners of the company who are held responsible for all aspects of the business, including
its profits and liabilities.
 Mr. Harish Reddy
 Mr. Girish Reddy
 Mr. Srikanth
 Mr. Karthik

2.7 FUTURE GROWTH AND PROSPECTS

The future growth and prospects of Lakshmi Machine Tools, continuous advancements in materials,
technology, and sustainability practices contribute to the positive outlook. Continuous study on various feed
system designs and develop the optimum design in terms of quality and productivity, developing as per
customer tool design.
Search of customers who have an aim of mutual growth in the future years with a vision of supplier
development for which company planned to expand. Also interested on research and development works that
will result in customer’s growth which in turn helps company grow.
Promise to serve customers with total integrity by offering innovative and value for money solutions.

11
 CHAPTER-3

3.1 MCKINSEY’S 7S FRAME WORK WITH SPECIAL REFERENCE TO ORGANISATIONAL

STUDY

The MCKINSEY’s 7S, it is management model, that describes the 7 elements to organize the company in a
holistic and an effective way. They are the factors which signifies the operation of the organization. The lead
of the organization should consider all the 7 factors for the successful implementation of the strategy.

It identifies seven internal factors of an organization that need to be aligned and mutually reinforcing to be
successful. The seven elements, all starting with the letter “S” are: strategy, structure, systems, shared
values, style, staff, skills.

The purpose of this 7’s framework is to emphasis that changing one aspect of an organization will impact
upon the others, in a truly effective organization, all seven elements will operate towards the same goal. If
any change leader believes that their organization could be more effective, they can use the framework to
help identify the element or elements need to change.

STRUCTURE

STRATEGY SYSTEM

SHARED
VALUES

SKILLS STYLE

STAFF

12
3.1.1 1. Structure:

Partners

MR

Design Production Finance &

Inspection
Department Department Marketing

Design /
Quality
Programme Tool Maker Accountant
control
r

Operators Filter

Helpers

The functions of these departments are as follows

Design department

 Tool designing
 Programming

Production department

 Raw materials and components

 Man power
 Machine layout

After production semi-finished and finished goods are stored for dispatch

13
Inspection department

 Total quality inspection (quality control)

 Receiving, in-process, final inspection
 including rejection and rework areas

Finance department

 Profit and loss account

 Balance sheet
 Cash flow statement
 Fund flow statement
 Financial management

Marketing department

 Planning and executing marketing strategies

 Monitoring competition
 Track trends and customer service

2.Strategy: The plan of an organization has to achieve its objectives. This is a dynamic element, in that it
changes all time in response to outside factors like competition, demand and technological innovations. It
includes the decisions made regarding resource allocation and the choice made to address the external
environment. The company’s strategy is to provide quality products to customers which includes a focus on
innovation and continuous improvement to stay ahead of competitors. Following are the strategies of LMT

 Maintaining high quality standards in manufacturing processes and products.

 Understanding and meeting the specific requirements of their customers. Building strong
relationships with their clients to ensure satisfaction and loyalty.
 Research and development to stay ahead of industry trends and technological advancements
 The company is following sustainable business practices.
 Expanding its market presence by identifying new opportunities.

3.System: The processes and procedure that directs the LMT’s operations. This includes information
system, financial procedures, legal policy, health and safety, pay and benefits. System entails business and
technical infrastructure of the company that establishes workflows and the chain of decision making.

4.Style: Examine the leadership style within the organization, ensuring it aligns with the strategic objectives
and fosters a culture of innovation and adoptability. The leadership style in the LMT focusses on
empowering employees and promoting open communication. Subordinates are also involved in decision
making process where they are open to give their opinions.

14
5.Skills: The skill set of the workforce. It refers to the capabilities and competencies of the organization’s
employees. The employees in the organization having diverse skills. Each of them is working in different
fields with different skills and talent. These members will take initiative to solve the problems.

Some of the skills of LMT employees are Manufacturing feasibility study, Knowledge in reverse
engineering & Proto sample development, Estimation & costing Process design, Tool design &
manufacturing, 3D modelling, Knowledge on product design, Knowledge on customer standard’s,
Production engineering.

6.Staff: Composition of the workforce, including their experience, diversity, and overall capacity to
contribute to company’s success. In simple it refers to organization’s human resources, people who work for
the organization. In LMT, the employees from different background having diverse knowledge, skills and
fresh talent which helps the organization in product development, innovation, quality control, customer
relationship, manufacturing process, solving issues, research and development, effective and efficient
productivity.

7.Shared values: The core values and beliefs that guide decision making, fostering common understanding
and commitment among employees. The LMT core values are outstanding, understanding, learning and
sharing, team work, contribution to industry. In case of any accidents occurs for employees, the company
bearing all the risk. Integrity and ethics, respect and teamwork, customer satisfaction reflects the core values
and enhancing the employee’s talent through proper training, that inspires creativity and action.

Through Mckinsey framework the company can identify the deviated actions and make necessary changes to
improve their effectiveness and competitiveness for accomplishment of their objective.

15
 Threats of
new
entrants

Rivalry
Bargaining
among
power of
existing
suppliers
competitors Porter’s
Five Force
Model

Bargaining
Threat of
power of
substitutes
customers

3.2 PORTER’S FIVE FORCE MODEL

Porter’s five force model is a frame work developed by Michael Porter in 1979 to analyze the competitive
forces within an industry. It identifies and analyses five competitive forces and helps to determine an
industry’s strength and weakness. Lakshmi Machine Tools use this model to analyze the competitiveness
faced by them and this model helps in understanding and providing solution to nature and level of
competition, threat of new entries. Five forces of this model determine the drive of profitability.

Threat of new entries

New competitors entering into market. High entry barriers, such as high capital requirements and economies
of scale, make it challenging for new companies to enter the automobile market. Established brands, patents,
and complex manufacturing processes also act as barriers.

The threat of new entrants for LMT may be influenced by the factors such as barriers to entry. The presence
of high barriers to entry, such as high capital requirements, strict regulations may reduce the threat of new
entries. If the market is relatively open few barriers to entry, then new competitors entering the market may
be higher. It is important to be cautious for Lakshmi Machine Tools to be innovative in its products in order
to maintain a competitive advantage.

16
Bargaining power of suppliers

It evaluates how much control suppliers have over the prices of goods and services. If there are few
suppliers, they may dominate the market or provide unique resources, their bargaining power is high.

The bargaining power of suppliers for LMT may be influenced by the factors such as the availability of
suppliers, demand for components and materials in the market. It is important for LMT to maintain strong
relationships with its suppliers and to have alternative sourcing options in order to mitigate any potential
increase in supplier bargaining power. Therefore, the bargaining power of supplier is low because there are
various number of suppliers present. Following are the major suppliers to LMT:

 Bohler, Mumbai
 Hitachi, Goel steel, Chennai
 Luccheni, multiple steels, Bangalore
 Super forging, Naveen steel corporation, Bangalore
 R.L Steels, S.S Syndicate steel, Bangalore

Bargaining power of buyers

This force analyses the power of customers in the market. Since customer is the king in the market. If
buyers have more choices they may easily switch to alternatives, their bargaining power is higher. The level
of competition and pricing strategies within in the industry may also impact the bargaining power of buyers.
It is important for LMT to understand and address the needs and concerns of its buyers in order to maintain a
competitive advantage and customer loyalty. The bargaining power of buyers is high as there are various
different and brands available. The buyers also have full information about the cost and the product. So, it is
important to maintain strong relationship with customers. Following are the customers of LMT:

 IFB industries limited

 Sandhar technologies limited
 Bridgestone
 Amphenol
 TVS motor company
 Mahendra
 Harita seating systems limited
 Avasarala technologies limited
 Royal Enfield
 Honda

17
Threat of substitute product and services

This force examines the degree to which other products or service can replace those offered by the company.
The availability of alternative products or services that could meet the same needs. The higher the
availability, the greater the threat.

The threat of substitutes for LMT could come from alternative products that serve a similar purpose or
provide similar benefits to customers. To reduce the threat of substitutes, LMT can focus on differentiating
their products, highlighting their uniqueness in their product and stay ahead of industry trends, building
strong customer relationships can also help in retaining customers and reducing the likelihood of them
switching to substitutes. To maintain competitive edge in the market, investing in research and development
to innovate and stay ahead of potential substitutes may help to reduce the threat of substitutes.

Rivalry among existing competitors

This force assesses the level of competition among existing firms in the industry. It includes the factors like
number of competitors, product differentiation, market saturation, exit barriers etc. influence rivalry
intensity.

LMT is influenced by the factors such as the number and strength of competitors, the rate of industry
growth, and the level of differentiation among products impact competitive rivalry. If LMT offers unique
and innovative products that set them apart from their competitors.

Some of the competitors of LMT are as follows

 Preci Molds and components

 Shree parnjothi Molds
 Precision mould tech
 Moldrite innovation pvt ltd
 Shree Sampath plastics
 Anjana enterprises
 Electro plasts pvt ltd
 Master craft engineers
 Jogi engineering industries
 Vardhaman pressure die casting pvt ltd


18
 CHAPTER-4

SWOT ANALYSIS

S W
STRENGTHS WEAKNESS

SWOT
ANALYSIS

OPPORTUNITIES THREATS

O T
SWOT (Strengths, Weakness, Opportunities, Threats) analysis is a framework used to evaluate a company’s
competitive position and to develop strategic planning. SWOT analysis pulls information regarding internal
sources (strengths and weakness of the company) as well as external forces that may have uncontrollable
impacts to decisions (opportunities and threats).

It is a framework that helps to asses and understand the internal and external forces that may create
opportunities or risk for an organization. SWOT analysis works best when diverse groups or voices within
an organization are free to provide realistic data points rather than prescribed messaging.

SWOT analysis helps in building a strong business strategy by considering all the factors that it faces in the
market place.

1.STRENGTHS

Internal factors or sources that give an advantage over others. Following are some of the areas where LMT is having
competitive advantage over others.

They carry out intensive development work to understand the varied requirements of their clients and offer
them innovations solutions to meet and exceed their expectations. Having a separate development team that
is manned by qualified and experienced professionals they are in a journey to concentrate more on upcoming

19
technologies in manufacturing. Everyone at their organization is open to new ideas, innovations, concepts
and work towards product improvisation.

STRENGTHS & SKILLS

 20 years of experience in manufacturing of Die casting tools, Plastic injection Molds, Rubber
injection Molds, fine blanking tools, Jigs and fixtures, mass production part manufacturing.
 Manufacturing feasibility for all type of components, Estimation and costing, Proto type parts
manufacturing, VA/VE and process knowledge
 Hands on experience in all types of CNC, conventional machines and tooling’s
 Knowledge in PPAP, APQP, Customer based standards / materials like M&M, HMSI, HCIL,
TKML, FORD, TATA, REML, YAMAHA, GFT, NISSION, MSIL, etc.
 In house CAD – CAM facility with skilled and trained experienced tool designers
 Experienced highly skilled young talented team for execution of projects on QCD methodology
 Industry expansion vision and 15.5 acres land available near to Narsapura industrial area, Kolar,
Karnataka for expansion

TEAM SKILL

 Manufacturing feasibility study and alternate VA/VE proposal.

 Knowledge in reverse engineering & Proto sample development
 Estimation & costing
 Process design & APSQP & PPAP Documentation
 Tool design & manufacturing
 3D modelling
 Knowledge on product design and GD&T
 Knowledge on customer standard’s
 Production engineering

TEAM STRENGTHS:

 Strong, rigid and customer friendly team work

 Strong communication for smoother work flow
 Rigorous follow up to meet the time lines

2.WEAKNESS

Internal attributes that place an organization at a disadvantage relative to others.

Some of the areas where Lakshmi Machine Tools need to improve are:

 Limited investment in research and development, hindering the company’s ability to stay ahead of
industry trends and provide innovative solutions.
20
  Lower ability to adopt to rapidly changing market dynamics.
 Limited brand recognition and market presence, potentially hindering the company’s ability to
compete with larger, more established firms.
 Niche markets and local monopolies, the customer network that LMT has promoted is proving less
and less effective.
 Employee turnover at lower levels, impacting the company’s ability to maintain a skilled and diverse
workforce.

3.OPPORTUNITY

Favorable conditions and external factors that could be leveraged to gain competitive advantage and improve
performance.

Some of the opportunities which benefits the Lakshmi Machine Tools are:

 Customer preferences are fast changing, customers today are more willing to try new products in the
market
 Average inflation rate, brings stability in the market, enable credit at lower interest rate.
 Accelerated technology innovations and advances, which are improving industrial productivity,
allowing suppliers to manufacture vast array of products and services.
 Market expansion
 Tax credits or incentives for business engaged in manufacturing can positively impact the financial
health.
 Government incentives for the adoption of new technologies.

4.THREATS

Unfavorable conditions and external factors that could hinder Lakshmi Machine Tools performance because
of changes in macro-economic factors

 Rising competition, competitors catching up with the product development.

 Intense competition from other established players, leading to potential market share erosion and
pricing pressures.
 Rapid technological advancements, posing a threat to the company where it could not afford to install
and necessitating continuous innovation.
 Customer volume fluctuation.
 Regulatory changes and compliance requirements in different markets, leading to increased
operational complexities and potential legal challenges.
 Supply chain disruptions and raw material price fluctuations, impacting production costs and
potentially affecting the company’s profitability.

21
 CHAPTER-5

ANALYSIS OF FINANCIAL STATEMENT

5.1 INCOME STATEMENT OF LAKSHMI MACHINE TOOLS FOR THE YEAR ENDED 2020-2023

PARTICULARS 2020-2021 2021-2022 2022-2023

Amount Amount Amount
I. Revenue from operations 13170150 17181247 20971650
II. Other income 2581500 7092740 9185700
III. TOTAL INCOME 15751650 24273987 30157350
IV. Less: expenses
V. Raw materials 2015145 5018128 6523566
VI. Wages and salaries 7639655 10913792 11568618
VII. Rent paid 120000 120000 126000
VIII. Repairs and maintenance 950185 1345979 1679867
IX. Office and administrative expenses 1088815 1555450 1586560
X. Labour welfare expenses 107793 153990 161690
XI. Travelling expenses 78910 386100 452433
XII. Depreciation charges 1450760 1450760 1523290
XIII. Other expenses 1267593 1755371 2878250
XIV. TOTAL EXPENSES 14718856 22699570 26500274
XV. Profit before interest and tax 1032794 1574417 3657076
XVI. Less: Interest 525670 852090 1262450
XVII. Profit after tax 507124 722327 2394626
XVIII. less: tax - 66698 568387
XIX. Profit after tax 507124 655629 1826239

Interpretation: The income statement of the company suggests that the company is doing well because it uses its
resources as efficiently as possible while sustaining a steady increase in revenue from operations. Because of the
company’s expanding operations, the cost of labour and materials.

22
5.2 CONSOLIDATED BALANCE SHEET OF LAKSHMI MACHINE TOOLS FROM 2020-2023

PARTICULARS 2020-2021 2021-2022 2022-2023

AMOUNT AMOUNT AMOUNT
EQUITIES AND LIABILITIES
SHAREHOLDER’S FUNDS
Equity share capital 11703098 11703098 11703098
Reserves and surplus 928000 110000 1280000
TOTAL EQUITY 12631098 11813098 12983098
NON-CURRENT LIABILITIES
Long term borrowings 1070000 1370000 1205000
CURRENT LIABILITIES
Short term provisions 2353745 3605748 3978436
Other current liabilities 1207089 1367849 1612982
TOTAL LIABILITIES 4630834 6343597 6796418
TOTAL EQUITIES AND LIABILITIES 17261932 18156695 19779516
ASSETS
NON-CURRENT ASSETS
Fixed Assets
Plant and machinery 8247860 8247860 8556750
Advances and Deposits 565300 655024 768378
TOTAL NON-CURRENT ASSETS 8813160 8902884 9325128
CURRENT ASSETS
Investment 4989215 5322015 6254896
Inventories 2088200 2389729 2798044
Cash 498900 756510 635200
Short term loans and provisions 678732 568520 389010
Other current assets 193725 217037 377238
TOTAL CURRENT ASSETS 8448772 9253811 10454388
TOTAL ASSETS 17261932 18156695 19779516

Interpretation: Above balance sheet indicates that the company’s total assets have increased from year to
year. This suggests that the company is growing and investing in business. The company’s total liabilities
also have increased over the past three years this shows that the company relies more on long term
borrowings.

23
5.3 COMPARITIVE BALANCE SHEET FOR THE YEAR ENDED 2021-2022

PARTICULARS 2020-2021 2021-2022 Absolute Percentage

AMOUNT AMOUNT change change
EQUITIES AND LIABILITIES
SHAREHOLDER’S FUNDS
Equity share capital 11703098 11703098 - -
Reserves and surplus 928000 110000 (818000) (88.14)
TOTAL EQUITY 12631098 11813098 (818000) (6.47)
NON-CURRENT LIABILITIES
Long term borrowings 1070000 1370000 300000 28.03
CURRENT LIABILITIES
Short term provisions 2353745 3605748 1252003 53.19
Other current liabilities 1207089 1367849 160760 13.03
TOTAL LIABILITIES 4630834 6343597 1712763 36.98
TOTAL EQUITIES AND 17261932 18156695 894763 5.18
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Fixed Assets
Plant and machinery 8247860 8247860 - -
Advances and Deposits 565300 655024 89724 15.87
TOTAL NON-CURRENT 8813160 8902884 89724 1.01
ASSETS
CURRENT ASSETS
Investment 4989215 5322015 332800 6.67
Inventories 2088200 2389729 301529 14.43
Cash 498900 756510 257610 51.63
Short term loans and provisions 678732 568520 (110212) 16.23
Other current assets 193725 217037 23312 12.03
TOTAL CURRENT ASSETS 8448772 9253811 805039 9.52
TOTAL ASSETS 17261932 18156695 894763 5.18

Interpretation: The current assets have increased by 9.52% compared to last year in the balance sheet. On the
other side, there has been a change of 66.22% in the current liabilities. This is due to 9.52% growth in
current assets. Second, there has been a 51.63% in cash and cash equivalents. This shows that the company

24
has required amount of positive cash to meet its immediate obligations. Next, there has been an increase in
long term debt by 28.03%.

25
5.4 COMPARITIVE BALANCE SHEET FOR THE YEAR ENDED 2022-2023
PARTICULARS 2021-2022 2022-2023 Absolute Percentage
AMOUNT AMOUNT change change
EQUITIES AND LIABILITIES
SHAREHOLDER’S FUNDS
Equity share capital 11703098 11703098 - -
Reserves and surplus 110000 1280000 1170000 1063.63
TOTAL EQUITY 11813098 12983098 1170000 9.90
NON-CURRENT LIABILITIES
Long term borrowings 1370000 1205000 (165000) (12.04)
CURRENT LIABILITIES
Short term provisions 3605748 3978436 372688 (10.33)
Other current liabilities 1367849 1612982 245133 17.92
TOTAL LIABILITIES 6343597 6796418 452821 7.14
TOTAL EQUITIES AND 18156695 19779516 1622821 8.94
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Fixed Assets
Plant and machinery 8247860 8556750 308890 3.74
Advances and Deposits 655024 768378 113354 17.30
TOTAL NON-CURRENT 8902884 9325128 422244 4.74
ASSETS
CURRENT ASSETS
Investment 5322015 6254896 932881 17.53
Inventories 2389729 2798044 408315 17.08
Cash 756510 635200 (121310) (16.03)
Short term loans and provisions 568520 389010 (179510) (31.57)
Other current assets 217037 377238 160201 73.81
TOTAL CURRENT ASSETS 9253811 10454388 1200577 12.97
TOTAL ASSETS 18156695 19779516 1622821 8.93

Interpretation: the company experienced growth in fixed assets as well as investments, contributing to the
overall increase in non-current assets. The company’s total assets increased by 8.93%, primarily driven by
the growth in non-current assets. The company has strengthened its financial position, with an increase in
total assets and also in the total liabilities of the company.

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5.5 COMMON SIZE BALANCE SHEET FOR THE YEAR ENDED 2020-2023

PARTICULARS 2020-2021 % 2021-2022 % 2022-2023 %

AMOUNT AMOUNT AMOUNT
EQUITIES AND
LIABILITIES
SHAREHOLDER’S
FUNDS
Equity share capital 11703098 67.79 11703098 64.45 11703098 59.17
Reserves and surplus 928000 5.37 110000 0.60 1280000 6.47
TOTAL EQUITY 12631098 73.17 11813098 65.06 12983098 65.64
NON-CURRENT
LIABILITIES
Long term borrowings 1070000 6.19 1370000 7.54 1205000 6.09
CURRENT
LIABILITIES
Short term provisions 2353745 13.63 3605748 19.86 3978436 20.11
Other current liabilities 1207089 6.99 1367849 7.53 1612982 8.15
TOTAL LIABILITIES 4630834 26.82 6343597 34.94 6796418 34.36
TOTAL EQUITIES 17261932 100 18156695 100 19779516 100
AND LIABILITIES
ASSETS
NON-CURRENT
ASSETS
Fixed Assets
Plant and machinery 8247860 47.78 8247860 45.42 8556750 43.26
Advances and Deposits 565300 3.27 655024 3.61 768378 3.88
TOTAL NON- 8813160 51.05 8902884 49.03 9325128 47.15
CURRENT ASSETS
CURRENT ASSETS
Investment 4989215 28.90 5322015 29.31 6254896 31.62
Inventories 2088200 12.09 2389729 13.16 2798044 14.15
Cash 498900 2.89 756510 4.17 635200 3.21
Short term loans and 678732 3.93 568520 3.13 389010 1.96
provisions
Other current assets 193725 1.12 217037 1.19 377238 1.90
TOTAL CURRENT 8448772 48.94 9253811 50.97 10454388 52.85
ASSETS
TOTAL ASSETS 17261932 100 18156695 100 19779516 100 27
Interpretation: We can infer from the above table that cash accounts for 3.2% of total assets while inventory
14.15% of total assets. And from liabilities section that current liabilities 28.26% and equity capital 59.17%,
long term debt accounts 6.09% and reserves account for 6.47% of liabilities and shareholder’s fund

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 5.6 COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDED 2021-22

PARTICULARS 2020-2021 2021-2022 Absolute Percentage

Amount Amount change change
I. Revenue from operations 13170150 17181247 4011097 30.45
II. Other income 2581500 7092740 4511240 174.75
III. TOTAL INCOME 15751650 24273987 8522337 54.10
IV. Less: expenses
V. Raw materials 2015145 5018128 3002983 1.49
VI. Wages and salaries 7639655 10913792 3274137 42.85
VII. Rent paid 120000 120000 - -
VIII. Repairs and maintenance 950185 1345979 395794 41.65
IX. Office and administrative 1088815 1555450 466635 42.85
expenses
X. Labour welfare expenses 107793 153990 46197 42.86
XI. Travelling expenses 78910 386100 307190 389.29
XII. Depreciation charges 1450760 1450760 - -
XIII. Other expenses 1267593 1755371 487778 38.48
XIV. TOTAL EXPENSES 14718856 22699570 7980714 54.22
XV. Profit before interest 1032794 1574417 541623 52.44
and tax
XVI. Less: Interest 525670 852090 326420 62.09
XVII. Profit after tax 507124 722327 215203 42.43
XVIII. less: tax - 66698 66698 -
XIX. Profit after tax 507124 655629 148505 29.28

Interpretation: The company achieved a significant growth in revenue and operating income. Expenses also
increased, with at a greater percentage compared to the growth in the revenue and gross profit. The 54.10%
increase in the net income indicates that the company’s profitability improved substantially.

5.7 COMPARITIVE INCOME STATEMENT FOR THE YEAR ENDED 2022-2023

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 PARTICULARS 2021-2022 2022-2023 Absolute Percentage
Amount Amount change change

17181247 20971650 37970403 22.06

I. Revenue from operations

II. Other income 7092740 9185700 2092960 29.51

III. TOTAL INCOME 24273987 30157350 5883363 24.23

IV. Less: expenses

V. Raw materials 5018128 6523566 1505438 29.99
VI. Wages and salaries 10913792 11568618 654826 5.99

VII. Rent paid 120000 126000 6000 5

VIII. Repairs and maintenance 1345979 1679867 333888 24.81

IX. Office and 1555450 1586560 31110 2

administrative expenses

X. Labour welfare expenses 153990 161690 7700 5

XI. Travelling expenses 386100 452433 66333 17.18

XII. Depreciation charges 1450760 1523290 72530 4.99

XIII. Other expenses 1755371 2878250 1122879 63.97
XIV. TOTAL EXPENSES 22699570 26500274 3800704 16.74
XV. Profit before interest 1574417 3657076 2082659 132.28
and tax

XVI. Less: Interest 852090 1262450 410360 48.16

XVII. Profit after tax 722327 2394626 1672299 231.51
XVIII. less: tax 66698 568387 501689 752.17
XIX. Profit after tax 655629 1826239 1170610 178.54

Interpretation: as per the comparative income statement in the year 2022-2023 the revenue from operations
increased by 20.6% and also income have been increased by 24.23%, while total expenses also increased due
to increase in operations and profits are made significantly.

30
5.8 COMMON SIZE INCOME STATEMENT FOR THE YEAR ENDED 2020-2023

PARTICULARS 2020- % 2021- % 2022- %

2021 2022 2023
Amount Amount Amount
I. Revenue from 13170150 100 1718124 100 2097165 100
operations 7 0
II. Other income 2581500 19.60 7092740 41.28 9185700 43.80
15751650 119.60 2427398 141.28 3015735 143.80
III. TOTAL INCOME
7 0
IV. Less: expenses
V. Raw materials 2015145 15.30 5018128 29.21 6523566 31.11
VI. Wages and salaries 7639655 58 1091379 63.52 1156861 55.16
2 8
VII. Rent paid 120000 0.91 120000 0.69 126000 0.60
VIII. Repairs and 950185 7.21 1345979 7.83 1679867 8.01
maintenance
IX. Office and 1088815 8.27 1555450 9.05 1586560 7.56
administrative
expenses
X. Labour welfare 107793 0.82 153990 0.89 161690 0.77
expenses
XI. Travelling expenses 78910 0.59 386100 2.24 452433 2.16
XII. Depreciation 1450760 11.01 1450760 8.44 1523290 7.26
charges
XIII. Other expenses 1267593 9.62 1755371 10.22 2878250 13.72
XIV. TOTAL 14718856 111.75 2269957 132.12 2650027 126.36
EXPENSES 0 4
XV. Profit before 1032794 7.84 1574417 9.16 3657076 17.43
interest and tax
XVI. Less: Interest 525670 3.99 852090 4.96 1262450 6.02
XVII. Profit after tax 507124 3.85 722327 4.20 2394626 11.41
XVIII. less: tax - 66698 0.39 568387 2.71
XIX. Profit after tax 507124 3.85 655629 3.15 1826239 8.70

Interpretation: In the above analysis, LMT has a profit margin 8.70%. Total expenses have increased as a
percentage due to increase in operations year by year. That involves increase in office and administrative and
other expenses.

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 5.9 RATIO ANALYSIS

5.9.1 CURRENT RATIO

The current ratio compares all of a company’s current assets to its current liabilities

current assets
Current ratio=
current liabilities

Year Current assets Current liabilities Current ratio

2020-21 8448772 3560834 2.37
2021-22 9253811 4973597 1.86
2022-23 10454388 5591418 1.86

CURRENT RATIO CHART

2.5 2.37

2 1.86 1.86

1.5

0.5

0
2020-21 2021-22 2022-23
Annual year

Interpretation: The above graph depicts the current ratio for the year 2020-21, 2021-22, 2022-23 are 2.37,
1.86, 1.86 ratio. The current ratio decreases by 0.51 due to increase of current liabilities and slight increase
in current assets. It’s better to improve the current ratio to 2:1.

5.9.2 QUICK RATIO

The Quick Ratio also known as the Acid test ratio, is a financial metric that measures a company’s ability to
meet its short-term obligations with its most liquid assets. Quick ratio or acid test ratio is estimating the
current assets minus inventories then divide by current liabilities

current assets−inventory
Quick ratio=
quick liabilities

Year Quick assets Current liabilities Quick ratio

2020-21 6360572 3560834 1.79
2021-22 6864082 4973597 1.38
2022-23 7656344 5591418 1.37

32
 QUICK RATIO CHART
2 1.79
1.8
1.6 1.38 1.37
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2020-21 2021-22 2022-23

Annual year
Interpretation: the
above graph indicates the quick ratio for the year 2020-21, 2021-2022, 2022-23 are 1.79, 1.38, 1.38. there is
a gradual decrease in quick ratio where the company decreases its liquidity level.

5.9.3 ABSOLUTE LIQUID RATIO

The Absolute Liquid Ratio, also known as the absolute liquidity ratio or cash assets ratio, is a financial
metric that assesses a company’s ability to meet its short-term obligations using its liquid assets.

cash∧cash equivalents+ market securities

Absolute liquid ratio=
current liabilities

Year Absolute liquid assets Current liabilities Absolute liquid ratio

2020-21 498900 3560834 0.14
2021-22 756510 4973597 0.15
2022-23 635200 5591418 0.11

ABSOLUTE LIQUID RATIO CHART

0.16
0.15
0.14 0.14
0.12
0.11
0.1
0.08
0.06
0.04
0.02
0
2020-21 2021-22 2022-23

Annual year

Interpretation: The above graph depicts absolute liquid ratio has been increased in the year 2021-2022 by
0.01 compared to the year 2020-2021 and decreased in the year 2022-2023 by 0.04 compared to previous
year. Hence the company decreases its absolute liquidity level where the company has capabilities to meet
its current liabilities with available cash and cash equivalents.

33
5.9.4 DEBT EQUITY RATIO
The debt equity ratio is a financial metric that compares company’s total debt to its total equity, serving as
an indicator of the proportion of debt used to finance a company’s assets. It is a measure of financial
leverage and risk.

long term debt

Debt equity ratio=
total equity

Year Long term debt Total equity Debt equity ratio

2020-21 1070000 12631098 0.08
2021-22 1370000 11813098 0.12
2022-23 1205000 12983098 0.09

DEBT EQUITY RATIO CHART

0.14
0.12
0.12
0.1 0.09
0.08
0.08
0.06
0.04
0.02
0
2020-21 2021-22 2022-23

Annual year

Interpretation: The above graph shows the debt equity ratio for the years 2020-21, 2021-22, 2022-23 i.e.,
0.08, 0.12, 0.09. It indicates that the company relies on both long term and equity but more on its equity. It
also indicates that company depends more on its long-term debt but highly financed by equity.

5.9.5 ASSET TURNOVER RATIO

The asset turnover ratio is a financial metric that measures a company’s efficiency in generating revenue
from its assets. It assesses how well a company utilizes its assets to generate sales. The formula for
calculating the asset turnover ratio is:

sales
Asset turnover ratio=
total assets

Year Sales Total assets Asset turnover ratio

2020-21 13170150 17261932 0.76
2021-22 17181247 18156695 0.95
2022-23 20971650 19779516 1.06

34
 ASSEST TURNOVER RATIO CHART
1.2 1.06
0.95
1
0.76
0.8
0.6
0.4
0.2
0
2020-21 2021-22 2022-23

Annual year
Interpretation: The
above graph shows the turnover of assets ratio for the years 2020-21, 2021-22, 2022-23 i.e., 0.76, 0.95, 1.06.
the ratio increases year by year indicating that sales are increasing from its assets. Hence the company
generates revenue from its assets efficiently and making profits.

5.9.6 PROPRIETARY RATIO

Proprietary ratio is a financial ratio that measures the proportion of a company’s total assets that are financed
by its shareholders equity. It’s an estimation of the amount capitalization currently used to support a
business.

total equity
Proprietary ratio=
total assets

Year Total equity Total assets Proprietary ratio

2020-21 12631098 17261932 0.73
2021-22 11813098 18156695 0.65
2022-23 12983098 19779516 0.66

PROPRIETARY RATIO CHART

0.74 0.73
0.72
0.7
0.68
0.66
0.66 0.65
0.64
0.62
0.6
2020-21 2021-22 2022-23

Annual year

35
Interpretation: The above graph shows the proprietary ratio for 3 years i.e., 0.73, 0.65, 0.66. It states that the
company is well consistent and the capitalization of the shareholders are well managed and wealth
maximized.

CHAPTER-6
LEARNING EXPERIENCE
I had the privilege of interning at LAKSHMI MACHINE TOOLS, Bangalore, from October 19, 2023 to
November 21, 2023. During my four-week internship, I gained valuable insights into various operations and
practical experiences across multiple departments. This internship provided me with a comprehensive
understanding of the company's processes and the role of each department in its overall success.

During my internship I learnt about

1. Die Casting Process:

I learnt about the die casting process, including the equipment used, materials involved, and the steps taken
to produce castings.

2. Material Properties and Selection:

Die casting involves working with a variety of materials, such as aluminum and magnesium alloys. I gained
insight into the properties of these materials, their suitability for different applications, and the factors
influencing material selection in die casting.

3. Quality Control and Assurance:

Quality control is essential in manufacturing to ensure that products meet specifications and standards. I
came to know about quality control processes, such as inspection techniques, testing methods, and quality
assurance protocols implemented in die casting operations.

4. Tooling and Mold Design:

I had the opportunity to learn about mold design principles, tooling manufacturing techniques.

5. Safety and Compliance:

Safety is paramount in any manufacturing environment. I got to know about the safety procedures,
equipment operation, and hazard mitigation measures specific to die casting operations and regulatory
compliance requirements governing manufacturing processes.

The internship at Lakshmi machine tools has helped me to get the deep insight of all the functional
department and their unique role in fulling the organizational goals. It also helped me in experiencing the
practicality of the theoretical knowledge that is a part of our curriculum.

Overall, my internship at Lakshmi machine tools has been a truly enriching experience. I have gained
valuable insights into the die casting manufacturing industry and have developed new skills that will be

36
beneficial in my future career. I am grateful for the opportunity to have worked at Lakshmi machine tools
and would like to thank the company for providing me with this valuable learning experience.

37
 BIBILOGRAPHY

 LMT company profile

 www.LMT.com
 Understanding Porter’s Five Forces Analysis- Books by Nerdynaut

38